Ashok Leyland is riding multiple tailwinds at once viz-a-viz a sharp uptick in exports led by the GCC, a strong domestic CV cycle driven by freight demand and fleet replacement and an expanding electric bus strategy that now includes a potential manufacturing footprint in Indonesia.

Speaking on the sidelines of the company’s Q3FY26 results announcement, Executive Chairman Dheeraj Hinduja and Chief Executive Officer Shenu Agarwal detailed how the company’s international operations, EV roadmap, new product launches and capex programme are aligning to position the CV maker for sustained growth into FY27.

Hinduja highlighted that exports have been extremely good this year with particularly strong traction from Saudi Arabia and the UAE.

“The Saudi market and the UAE market continue to be very strong. We have developed products that are very suitable for these economies and our Ras Al Khaimah plant is working nearly at full capacity,” he said.

The GCC markets are now a key growth engine within Ashok Leyland’s international portfolio and overall overseas operations are expected to close the year on a robust note. The near-full utilisation at the facility underlines not only demand strength but also the company’s increasing localisation and relevance in these markets.

Furthermore, a recent MOU with PT Pindad in Indonesia marks Ashok Leyland’s intent to deepen its presence in Southeast Asia. Hinduja noted that the agreement was signed only last week and is aimed at building a much larger footprint in a sizeable market.

“This opportunity allows us to not only focus on electric buses but also on defence products,” he said, indicating that the partnership has a wider scope than just EV mobility.

While still in early stages, the understanding is that the collaboration could evolve into local manufacturing of vehicles in Indonesia for the domestic market, strengthening Ashok Leyland’s ASEAN presence while aligning with local industrial priorities. “We see good opportunities going forward in the Indonesian market,” Hinduja added.

Promising Q1FY27

On the near-term outlook, Hinduja said the momentum seen from Q1 through Q3 has continued into Q4. “The current quarter is looking very good. We have seen steady growth from Q1, Q2 and Q3, and this current quarter is also looking very strong,” he said, citing CRISIL estimates that suggest the company could close the year with overall growth of 10–12 percent.

Looking ahead, while Q1 is traditionally softer for the industry, the company is seeing encouraging signs. “Generally, Q1 is slightly slower than the rest of the year but at the moment the indications of Q1 are also very good,” he noted.

This optimism is underpinned by what the company believes is not a temporary spike but the start of a sustained replacement-led demand cycle. Agarwal pointed to January’s industry data, where the MHCV segment grew around 27 percent and LCVs over 20 percent as evidence of structural demand.

“We do believe that this is not a short-term blip because of GST. This is a result of overall growth in the consumption economy, which is leading to higher freight demand and higher freight rates,” he said. India’s truck fleet age is currently at an all-time high and the improved freight environment appears to have triggered a long-awaited replacement cycle.

“If the industry was waiting for some kind of a trigger to start this new replacement cycle, we believe that has now happened, and therefore it will go for a longer run,” Agarwal said. A major part of Ashok Leyland’s MHCV strategy lies in the launch of Hippo and Taurus, developed over the past couple of years.

“These products truly represent best-in-class performance and reliability,” Agarwal said. Both trucks deliver peak torque of around 1,600 Nm, among the best in the category and use upgraded driveline aggregates to improve reliability in tough applications such as tippers.

On the tractor side, the focus is on improving turnaround time for customers through higher power and heavy-duty aggregates. “The whole range will be launched between now and April and thereafter we will use the full potential of these products,” he added.

EV demand rising

Despite reports of a slowdown in staff and school bus segments, Ashok Leyland says its order book remains strong across both conventional and electric buses. “Our bus order book is very healthy and very strong at the moment,” Hinduja said.

He noted that the new Lucknow greenfield plant, completed in a record 14 months, has come at the right time to support increased bus demand. The plant is primarily focused on EVs, with phase one capacity of 2,500 units, scalable to 5,000 units.

Agarwal attributed recent industry blips in bus growth to timing issues in STU orders rather than any fundamental demand weakness. “The sentiment is very, very positive even in the staff and school sectors,” he said. Agarwal emphasised that electrification will not be uniform across segments.

“Buses are seeing a huge spike in government purchases. We are very, very optimistic about the electric bus business,” he said. Switch, the company’s EV arm, is fully ready with products for India and overseas markets. A manufacturing base for EV buses is also being set up at the RAK plant, expected to be operational in about 12 months.

Electrification is also expected to gain traction in the 2–4 tonne and intermediate CV categories, where Ashok Leyland was among the first to launch electric offerings. While Ashok Leyland did not directly win tenders in the last 10,000-bus PM e-Bus Sewa round, Switch secured significant orders through an infrastructure partner. Both entities plan to participate in upcoming tenders.

The government’s plan to induct over 50,000 electric buses into STU fleets over the next four to five years is seen as a major opportunity. Switch has already exported EV buses to Mauritius and received an order for 45 buses from Bhutan, underlining its growing international footprint.

Market segments

The company acknowledged some commodity cost pressure in recent months, driven not by steel but by spikes in certain precious metals. This has pushed up Q3 material costs sequentially.

Hinduja expects this pressure to ease within three to four months. Meanwhile, the company is doubling down on efficiency, waste reduction and cost control. Ashok Leyland will close the year with capex of around INR 10–11 billion and plans to invest about INR 10 billion annually over the next two years towards its Centre of Excellence and factory projects.

Agarwal said the company has also consciously grown non-domestic CV businesses including industrial engines, power solutions, defence and spares to reduce dependence on domestic MHCV volumes. “This reduces our break-even point from MHCV domestic sales and gives a lot of strength to the company for future growth,” he said.

Despite being a late entrant in LCVs, Ashok Leyland now holds around 12 percent market share and insists it will not chase growth through discounting. “Our industry is basically TCO-focused. If the customer sees extra value, there is no hesitation in paying more,” Agarwal said, pointing to digitisation, AI-led service initiatives, reliability and turnaround time as key differentiators.

For Ashok Leyland, the strategy is clear with differentiated products, strong service, rising exports, EV readiness and a favourable domestic cycle, all converging as it prepares for the next phase of commercial vehicle growth.

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Swedish automotive major Volvo Group has announced that Stephen Roy, President of Mack Trucks and head of Group Trucks North America, will retire after nearly 25 years with the company.

He will be succeeded by Wilson Lirmann, the Current Head of Volvo Trucks Latin America, effective 1 August 2026.

Roy has held various senior leadership positions across Volvo’s truck and construction equipment divisions. During his three-year tenure as President of Mack Trucks, he is credited with establishing a foundation for the brand's growth in the North American market.

Lirmann brings around 10 years of experience as the leader of Volvo’s Latin American business. His background includes multiple roles within the truck division, where he has focused on operational efficiency and market expansion in South America.

Martin Lundstedt, President and CEO, Volvo Group, said, “I am deeply grateful for Stephen’s contributions over the years. In his different roles, Stephen has driven the platform for continued growth in North America, reinforcing our regional strategy and setting us up well for the next phase.”

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Scania Commercial Vehicle India (SCVI) has inaugurated its new corporate office in Bengaluru, marking a significant milestone in strengthening its footprint in the country in the presence of Jan Thesleff, Ambassador of Sweden to India. Also present were Silvio Munhoz, Managing Director, Scania Commercial Vehicles India Pvt Ltd; Martin Stahlberg, Senior Vice President Asia and Oceania at Scania CV AB; senior Scania leaders; key customers; dealer partners, and senior members from Business Sweden and finance partners.
Reinforcing its long-term commitment to India, the new office in Bengaluru follows the launch of Scani Super and the announcement of the White label financing programme in partnership with Axis Bank, which is aimed at providing customers with accessible and competitive financing solutions for purchasing Scania trucks in India.
Confirming that its Regional Product Centre (RPC) in Narasapura will remain fully operational with end-to-end capabilities and support customers with tailored solutions across key segments, SCVI officials mentioned that the recently developments leading up to the inauguration of the office in downtown Bengaluru reflect the Swedish commercial vehicle manufacturer’s continued focus on expanding its presence in India, strengthening its ecosystem and building a more locally anchored and responsive business to meet evolving customer needs.
With uptime, efficiency and business resilience impetus rising, Scania is aiming for greater agility and shorter response times. It is strengthening its market presence and the support ecosystem around customers. The Bengaluru office will play a key role there, enabling stronger collaboration, faster decision-making and superior customer engagement. It will also play a vital role in dealer engagement, engagement with financial institutions and other stakeholders. 
The Bengaluru office will also serve a hub to attract and nurture a strong talent pool, bring together skilled professionals who will drive innovation, operational excellence and long-term growth for the company in India.
Ambassador Thesleff expressed that it is a pleasure to witness this important milestone for Scania in India. “The inauguration of the new Bengaluru office reflects not only Scania’s continued commitment to the market but also a strong vote of confidence in India’s growth and long-term potential,” he added.
Reflecting on Sweden and India sharing a deep and expanding partnership, building a collaborative atmosphere across trades and in innovation and sustainability, Thesleff said, “The new Scania office in Bengaluru underscores the Swedish manufacturer’s focus on future-ready mobility solutions and sustainable development as well.” 
Munhoz stated that India is a strategically important market for Scania and the focus is on building a business that is closer to customers, is faster in response and stronger in execution. 
“The new Bengaluru office not only enhances our ability to collaborate more closely with customers and partners but also strengthens our access to a highly skilled talent pool, enabling us to build a future-ready organisation,” he added. 
Martin Stahlberg, Senior Vice President Asia and Oceania at Scania CV AB, articulated, “From a global perspective, India represents a key market for Scania’s long-term growth and capability development. The inauguration of our Bengaluru office reflects our commitment to strengthening our local presence while enhancing how we support customers and partners in the region.” “This milestone reinforces our focus on building sustainable capabilities and delivering long-term value in markets that are central to Scania’s global growth journey,” he stressed. 
Located in the heart of Bengaluru, the Scania office in Bengaluru will serve as a hub for key functions, supporting closer coordination across teams and enabling greater agility and responsiveness in a market that continues to be central to Scania’s regional ambitions.
The new office was inaugurated in the presence of senior Scania leadership, key customers, dealer partners, senior members from Business Sweden and finance partners. Designed in line with the Scania Way and Swedish open work culture, the office features collaborative layouts, functional design, and sustainability-focused elements such as energy-efficient lighting, climate control systems, and the use of sustainable and recyclable materials where feasible.
 

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Ashok Leyland has launched 'Twin Fuel' variants of the Dost and Dost+ XL pickup trucks in an effort to deliver sustainable customer-centric mobility solutions. The models are equipped with advanced technology that allows seamless switching between Compressed Natural Gas (CNG) and petrol, offering customers unmatched flexibility and peace of mind. The Twin Fuel technology addresses one of the most pressing concerns for CNG vehicle users – range anxiety and the fear of not finding a CNG pump along their route. With dual-fuel capability, customers can seamlessly switch between CNG and Petrol, ensuring uninterrupted journeys and the freedom to travel longer distances without compromise mentioned Amandeep Singh, President – LCV, IO, Defence & Power Solutions, Ashok Leyland, at the launch. 
"The launch of our Twin Fuel Dost and Dost+ XL is a significant step in our journey towards sustainable and customer-focused innovation," he explained. "We believe this will set new benchmarks in the LCV segment and reinforce our leadership in providing future-ready mobility solutions," Singh observed.  
Viplav Shah, Head - LCV Business, Ashok Leyland, expressed, "The Dost range already has the trust of hundreds of thousands of small businesses. With the introduction of TWIN FUEL variants, we are empowering small businesses and fleet operators with greater choice and efficiency. The vehicles are designed to provide operational flexibility by running on CNG for cost efficiency and petrol for extended range and eliminating availability anxiety, while delivering lower emissions that reduce the carbon footprint and support India’s sustainability goals. We believe this innovation will resonate strongly with entrepreneurs and fleet operators across India."

Distinguishing itself with a benchmark payload capacity of 1218 kg, an extended driving range of 400 km and having a large CNG tank of 120 litres, the twin fuel Dost comes with an additional petrol tank of five litres as a back up fuel supply. In the case of Twin Fuel Dost+ XL, the payload is of 1410 kg, the CNG tank is of 148 litres and an additional petrol tank is of five litres. The resultant range that is delivered is a good 500 km, addressing a key challenge faced by urban and semi-urban logistics operators, last-mile delivery businesses and small enterprises. 

The Twin Fuel Dost is priced at INR 820,ooo ex-showroom and the Twin Fuel Dost+ XL is priced upwards of INR 875,000 ex-showroom. 

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Tata Motors Ltd has rolled out the one millionth commercial vehicle from its Lucknow facility, commemorating more than three-and-a-half decades of its presence in Uttar Pradesh and its contribution to industrial excellence, economic growth, skill development and sustained livelihood creation. 
At a time when India’s commercial vehicle industry is undergoing rapid transformation towards cleaner, smarter and more efficient mobility solutions, this milestone underscores Tata Motors’ leadership in shaping the future of mobility. The milestone vehicle, a zero-emission electric bus, highlighted the shared commitment of Uttar Pradesh and Tata Motors to green mobility, aligned with the state’s net-zero 2070 vision and the company’s net-zero target of 2045. It was flagged off by the Hon’ble Chief Minister of Uttar Pradesh, Yogi Adityanath, and N Chandrasekaran, Chairman, Tata Sons Ltd, in the presence of the Deputy Chief Minister Brajesh Pathak; Girish Wagh, Managing Director and Chief Executive Officer, Tata Motors Ltd, and eminent ministers as well as public representatives. Also present were senior bureaucrats, government officials and senior leaders from Tata Motors.
Speaking on the occasion, the Chief Minister said, “The rollout of 10 lakh trucks and buses from Tata Motors’ Lucknow facility is a moment of pride for the entire state. It is a recognition of the state’s capabilities and immense potential, as well as of its talented people. Our vision is to transform Uttar Pradesh into a one trillion-dollar economy, with industry and entrepreneurs playing a pivotal role in this journey. The state offers a conducive ecosystem for scalable businesses, supported by a vast consumer market, a young, skilled workforce and seamless connectivity.” “Tata Motors’ success in Uttar Pradesh reflects the strength of this ecosystem and reinforces our commitment to fostering responsible industrial growth, creating jobs, building skills and advancing sustainable socioeconomic development,” he added. 
Established in 1992, Tata Motors’ Lucknow facility has evolved into one of its most significant commercial vehicles manufacturing hubs, producing trucks and buses that meet global standards across multiple powertrains, including zero emission electric and fuel cell electric vehicles. Spread over 600 acres, the plant combines manufacturing scale with a strong focus on people and sustainability—supporting over 8,000 livelihoods, building industry relevant skills through flagship training programmes, and operating as a water positive facility powered by 100 percent renewable energy, underscoring Tata Motors’ commitment to inclusive growth and sustainability ingrained responsible industrialisation. 
The facility also supports a robust supplier ecosystem, enabling MSMEs and ancillary industries across Uttar Pradesh and beyond. Speaking on the occasion, Chandrasekaran averred, “The production of Tata Motors’ 10th lakh (one millionth) commercial vehicle from its Lucknow facility reflects the strength of our longstanding partnership with Uttar Pradesh. Over more than three decades, this collaboration has demonstrated how industry, government and communities can come together to drive industrial excellence, create livelihoods and build capabilities at scale. We are deeply grateful to the Hon’ble Chief Minister and the entire state for their continued support and for fostering a progressive, growth-oriented approach. As Uttar Pradesh accelerates its journey towards sustainable and inclusive growth, we remain firmly committed to contributing to its progress and to shaping a future ready mobility ecosystem.”
The landmark production milestone of 10 lakh (one million) vehicles underscores Tata Motors’ enduring commitment to Uttar Pradesh—anchored in manufacturing excellence, people-centric growth and responsible industrialisation. As the company advances its net zero journey, the Lucknow plant will continue to play a pivotal role in shaping a cleaner, smarter and more sustainable mobility future for India. It is the only Tata Motors’ plant that produces trucks and buses. Commercial vehicles above four tonnes and up to 55 tonnes are made at the plant on Dewa Road to the north of Lucknow city. 
The integrated facility produced around 56,000 vehicles last year and is structured such that trucks and bus chassis are made in one half of the plant. Bus bodies are built in the other half and sent to the other half to be married with the chassis. The ratio of buses and trucks produced is 25:75. The integrated facility also has a vendor park that houses Tata Group suppliers under Tata AutoComp. There are other vendors that have facilities in the vicinity of the plant as well. 

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